Vietnam: Supply chain disruption is not just a risk

The seafood supply chain is broken due to a lack of labor which is due to the implementation of social distancing… In the photo: Production at Cafatex Seafood Company (Hau Giang).

Concern about supply chain disruption and unsecured social security are the reason why the Research Group of the National Economics University has just issued a series of urgent recommendations.

Supply chain disruption in many industries and fields

No longer a concern, the National Economics University Research Group has seen supply chain disruptions taking place in many industries and fields.

Firstly, the supply chain of processed-manufactured goods such as electricity, electronics, machinery and equipment… is broken in relation to strongly infected areas, such as Ho Chi Minh City. In this group, supply chains for high-tech industries (electricity, electronics, automobiles, etc.) are affected in terms of working conditions. In particular, the supply chain of the automotive industry is also affected by a double impact, because in addition to the impact of COVID-19, there is also the cause of US trade restrictions on chip manufacturers, material restrictions. semiconductor in China.

Second, the supply chain of aquatic products and agricultural products is broken because workers are isolated, separated, and circulation stagnates. Many areas of produce arrive at harvest with no output and are difficult to transport, leading to breakage.

Third, the textile and garment supply chain is broken due to lack of labor due to social distance, production conditions “3 on the spot” or “1 route, 2 destinations“… are not suitable for all localities.

It is worth mentioning that the consequences of supply chain disruption are not only difficulties and insecurities of enterprises. The Research Group of the National Economics University has a separate report on the status of social security with many concerns.

Many workers are forced to quit or have to agree to stop working but are not entitled to timely benefits because administrative regulations cannot be implemented during blockade and social isolation. Many employees have not yet fully participated in social insurance or have participated but enterprises still owe social insurance contributions, so they are not considered as beneficiaries of Resolution 68/NQ-CP dated 7/1/ 2021 and Decision 23/2021/QD-TTg dated 7/7/2021,” the report of the National Economics University wrote.

In particular, many informal workers have completely lost their livelihoods when provinces and cities have implemented Directive 16 and Directive 16+, but they are not subject to the current supporting regulations. Many employees have to be treated and isolated due to being positive for COVID-19, but the sickness benefits of social insurance have not been resolved due to the failure to complete the procedures.

Meanwhile, the extension of the “3 on-site” and “1 road, 2 destinations” models at businesses have greatly affected the psychology and health of workers…

Urgent policy recommendations

If the two bottlenecks, which are supply chain disruptions and social security, cannot be solved, the dual goals set by the Government are unlikely to be achieved. The Research Group of National Economics University, including Assoc. Prof. Dr. Pham Hong Chuong, Rector; Assoc. Prof. Dr. Bui Huy Nhuong, Vice Rector; Assoc. Prof. Dr. To Trung Thanh, Head of Scientific Management Department; Assoc. Prof. Dr. Ta Van Loi; Assoc. Prof-Dr. Giang Thanh Long emphasized this in the report published in early September 2021.

This is also the reason for urgent and short-term policy recommendations to be proposed to the Government, with the goal of immediately removing the causes of the fault.

Accordingly, the study team recommends that the Government direct central and local ministries, agencies and sectors to follow the spirit of Directive 16, ensuring the smooth transportation of goods and production materials. .

Allow businesses to use safe qualified workers (with 2 vaccines or a negative test in 72 hours), as well as allow safe qualified workers to participate in normal business activities, especially for workers in industrial zones and enterprises in the supply chain with independent space, separate from residential areas,” the Study Team’s Supply Chain Report proposed.

The group also proposes to remove the provisions on essential goods and services in Directive 16 and instead specify the goods and services that are not allowed to circulate; replace the “green channel” mechanism with a mechanism that allows vehicles to freely move on national highways, provincial roads and main roads (green roads), but strictly manage drivers, do not allow parking, stop and unload at random locally.

Thus, it is not necessary to force the means of transport to stop for inspection. Instead, epidemic prevention/control stations will identify safe vehicles passing by automatic identification methods. At petrol and oil refueling stations, there must be a quick test area, isolating drivers when refueling, clearly defining rest stops, including routes to and from.

In particular, the Research Team built an electronic application (App) “Safe labor resources” to inform recruitment and temporary jobs in industrial zones, provinces and cities to help “regional workers” have jobs right away, businesses that meet production conditions can easily access safe labor sources.

Government, local authorities strengthen policy and regulatory dialogue with stakeholders, especially associations, businesses and people affected by COVID-19 lockdown,” the Research Team said in its research proposal.

The Study Team suggested that the Government ask localities to invite business representatives to join the Economic Recovery Advisory Group or the Anti-Pandemic Team for timely information on both the business situation and the issues of the employees.

4 recommendations for businesses

Firstly, digital transformation and electronic business. Join sales service platforms Tiki, Sendo… to avoid information disruption and communication with customers. Exporting businesses need to join Amazon, Alibaba, Indiamart channels…

Second, strengthen smart management solutions and digital transformation, such as strengthening surveillance cameras, buffer partitions for transferring semi-finished materials, establishing self-monitoring mechanisms, etc. 2 shifts, 3 crews, reduce at least 50% of the workforce to ensure 5K. Even, the organization disperses auxiliary production activities, increasing outsourcing, outsourcing…

Third, take advantage of the gap to research and develop new materials, substitutes, easy-to-find sources… Create a new supply chain, ensure adaptation to the epidemic situation and have a long-term plan for the supply chain in the new context.

Fourth, mobilize all resources to work with the Government and localities to speed up the vaccination campaign. (Translated)


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